Question

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $24,924 debit balance, but its July bank statement shows a $26,832 cash balance. b. Check No. 3031 for $1,330, Check No. 3065 for $441, and Check No. 3069 for $2,098 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. d. The July bank statement shows the bank collected $9,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $10,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement

Answer 1

Answer: Bank Reconcillation :

Bank Reconcillation Statement for this company on July 31st
	Amount in $
a) On July 31st Bank Balance in low in Cash Book by
26832+(-24924)	1908
b) Check Outstanding
$ 1330 + $ 441 + $2098	-3869
c) Expenses for Rent was written less by
$1240- $1230	-10
d) Cash Collected by Bank but not recorded in Branch	9500
e) Chq. Received from customer has not recorded in Branch	805
f) Bank Service Charges not recorded in company	-14
g) Cash Receipt recorded in Company not entered in Bank statement	-10632
Balance as per Cash Book(Credit)	-2,312

Answer for Part 2:

No adjustment entry is prepared in Bank Reconcillation statement.